The majority of research on poverty in the United States focused on absolute poverty. The purpose of the article by Rank and Hurschl (2015) was to predict the likelihood of a person falling below the poverty level between the ages of 25 and 60. The author notes an increased attention on income inequality in the United States and that the focus of this inequality is directed at the top level of the income distribution. The author takes a life course approach for this examination on the extent of poverty in the lifetime of Americans. The key points of this article and the background to the problem of poverty concern the many ways in which poverty is measured and the differences between absolute and relative poverty. Absolute poverty is basically measured as the bare minimum to maintain a threshold for living conditions. Anyone falling below this threshold is consider poor. The poverty line as officially designated by the U.S. is an example of an absolute measure of poverty.
Extreme poverty affects over 1.44 billion people each year. Under extreme poverty, individuals live on less than $1.25 a day and lack the resources to sustain life or make meaningful choices. People living under extreme poverty conditions do not always have access to safe water, health care, sanitation, and shelter. Also, people living in extreme poverty may not be able to afford education for this children. Unlike absolute poverty and relative poverty, extreme poverty only occurs in developing countries.
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"Poverty in the United States".
Conversely, poverty is also measured taking a relative approach. As an example, people who fall below the 20% of income distribution may be classified as being poor. In another sense, the poor could be defined as anyone who falls below the 50% mark in relation the median income of the population. There is a continuous debate on where the poverty line should be drawn. The study by Rank and Hurst (2015) fills the gap in the literature by focusing on poverty and intergenerational mobility as a means of measuring income.
The authors note that there are specific variables that are associated with an increased risk for poverty. These factors include being younger, less educated, being disabled, not married, female, and being nonwhite. Also, interesting to note is that poverty is also likely to affect various age categories. For example, in this study the age category with the highest levels of poverty were between the ages of 25 and 34 with more than 45% experiencing poverty.
Analysis
This study presented with strengths and limitations. One strength of this study is that it highlights the fact that relative poverty is widespread. Results of the study indicate that a 60% of the population between the age of 25 and 60 will experience at least one year of poverty. Furthermore, almost ¼ of the population will experience two or more years of poverty. Unfortunately, this study highlights the fact that poverty in many ways is conceptualized as a fluid movement in and out of poverty. Another strength of the study was in its design. The longitudinal study eliminated the need to truncate observations related to income. This is important because of the variations in household incomes that occur. Limitations of the study included a small sample size that did not represent the immigrant population in the United States. Further because of the nature of the methodology and design, no causal relationships are feasible.
Reaction
These findings suggest that the majority of people between the ages of 25 and 60 will experience a year of poverty. These startling results confirm just how prevalent poverty is in this country. Relative poverty will therefore impact the majority of Americans. Also, the study highlights the inequality in income distribution and inequality. This study confirmed earlier studies that examined the life course of absolute poverty (Rank, Hurschl, & Foster, 2014; Rank, 2004). The study further highlights the overall story about how income inequality levels have risen over the past four decades. In fact, the findings of the study reinforce previous research that illustrate that the odds of experiencing poverty in lifetime are high.
- Rank, M. R., & Hirschl, T. A. (2015). The likelihood of experiencing relative poverty over the life course. PloS one, 10(7), e0133513.
- Rank, M.R, Hirschl,T.A, & Foster, K.A. (2014) Chasing the American dream: understanding what shapes our fortunes. New York: Oxford University Press. 226 p
- Rank, M.R. (2004) One nation, underprivileged: why American poverty affects us all. New York: Oxford University Press. 356 p.
